A bear market is a period in which stock prices decline by 20% or more from their recent peak, typically lasting at least two months. It reflects widespread investor pessimism and fear, causing a general downward trend in the market

. Bear markets are normal and tend to be shorter than bull markets, with an average duration of about 9 to 13 months and an average loss of around 30% in major indexes like the S&P 500

. Bear markets differ from market corrections, which are smaller declines of 10% to 19.9% and usually shorter-lived

. They often coincide with economic slowdowns but do not necessarily indicate a recession

. Bear markets can be cyclical (linked to economic cycles), structural (caused by financial imbalances or bubbles), or event-driven (triggered by specific shocks like wars or pandemics), each varying in severity and recovery time

. Despite their negative impact, bear markets are part of the natural market cycle, and historically, markets have recovered and grown over the long term

. Staying invested during bear markets can be beneficial since many of the market's strongest gains often occur during or shortly after these downturns